Lodha Developers to rope in PEs to part-fund DLF land buy

MUMBAI: India's largest real estate player DLF has signed a binding agreement with Mumbai-based Lodha Developers to sell its 17.5-acre NTC mill land in Mumbai's Lower Parel area for Rs 2,700 crore, the two companies said. The deal is expected to be completed by end of October 2012.

To finance the acquisition, Lodha has initiated talks with a clutch of private equity players. "We have heard from several private equity firms for equity participation in this project. We may induct an equity partner, but may not raise more than 500 crore through this," said Abhisheck Lodha, managing director, Lodha Group, which plans to fund the purchase of the land mostly though internal accruals and some amount of private equity.

According to industry officials, the company is close to receiving financial support from private equity players HDFC Property Ventures and Singapore's GIC. This, however, could not be ascertained independently.